Hong Kong Quick Watch

Futu Information on May 18 | the trend of Hong Kong stocks diverged, with the Hang Seng Index closing up 0.2%, the National Index up 0.18%, and the Hang Seng Technology Index down 0.29%.

As of the close, Hong Kong stocks rose 983, fell 833, and closed flat at 1055.

On the plate side, most technology stocks fell.BABA, Tencent and Meituan fell nearly 1%, JD.com fell more than 1%, and Kuaishou Technology fell 2%.

Inner housing stocks rose in the afternoon.Hejing Pacific Group is up nearly 5%, Xuhui Holdings Group is up more than 3%, Longfor Group is up 2%, China Resources Land is up 1% and Country Garden Holdings is up nearly 1%.

Property management stocks rose.Greentown service rose by more than 4%, Sunac Services by more than 3% and Country Garden Services Holdings by more than 2%.

Power stocks rose in the afternoon.China Resources Power Holdings rose by more than 8%, Huaneng International Power by more than 7%, China Power by 5%, and Huadian International Power by more than 3%.

Photovoltaic solar stocks are activeXinyi Solar is up 4% and Fuyao Glass Industry Group is up nearly 2%.

Auto stocks continue to riseNIO Inc. rose by more than 7%, Byd Company Limited by more than 2%, and Geely Automobile by nearly 1%. According to the news, it is reported that the policy of going to the countryside for cars is expected to be introduced in early June.

In addition,Auto parts, education and other sectors are stronger.

Individual stocks$Tengshengbo Medicine-B (02137.HK) $It rose sharply in the afternoon, rising by more than 8% at one point and closing by more than 6%. On the face of the news, COVID-19 Therapy has been included in the health insurance catalogue of more than 20 provinces.

$Ganfeng Lithium (01772.HK) $It's up more than 3%. On the news side, the Australian Pilbara lithium concentrate auction is approaching, the market expects lithium ore prices may jump again.

$NWS Group (00659.HK) $The volume increased by nearly 8%, reaching a new high in nearly a year. On the news side, a share buyback program will be implemented, involving no more than US $300 million.

$Yadi Holdings (01585.HK) $It closed up more than 6%, up from 9% at one point. On the face of the news, southward funds increased their holdings of the company's shares for five consecutive days.

$Gome Retail (00493.HK) $It rose by more than 10%, reaching a new high in about a month. On the news side, the company has carried out comprehensive strategic cooperation with Huawei in the areas of store operation and management, digital marketing, Internet of things and so on.

Hong Kong stock exchange fund

As for Hong Kong Stock Connect, there was a net inflow of HK $806 million from Hong Kong Stock Connect (southbound) today.

Today's turnover of Hong Kong shares TOP20

Message surface

The National Committee of the Chinese people's political Consultative Conference held a special meeting on digital economy, Liu he: support digital enterprises to list in domestic and foreign capital markets

Liu he, member of the political Bureau of the CPC Central Committee and vice premier of the State Council, attended the meeting and delivered a speech. He pointed out that the global digital economy is showing new features such as intelligence, quantization and cross-border integration. We should strive to adapt to the omni-directional changes brought about by the digital economy, do a good job in the battle of key core technologies, support the sustained and healthy development of the platform economy and the private economy, properly handle the relationship between the government and the market, and support the listing of digital enterprises in domestic and foreign capital markets. Open to promote competition, competition to promote innovation.

Bancassurance Regulatory Commission: at present, China's banking industry maintains a sound operation.

Mao Hongjun, head of the Pratt & Whitney Finance Department of the China Banking and Insurance Regulatory Commission, said that at present, China's banking industry has maintained a sound operation and a strong ability to resist risks, which also provides policy space for regulation to play a countercyclical role and provide relief for small and micro enterprises. The non-performing loan ratio of the entire banking industry was 1.82%, which remained at a reasonable level. The banking reserve balance was 7.4 trillion yuan, and the provision coverage rate reached 197.5%. In the next step, the CBIC will co-ordinate epidemic prevention and control and economic development, and regulatory policies will rely on the front to help effectively stabilize the economic market. At the same time, it will urge the banking industry to prepare in advance for non-performing loans that may be exposed in the future, classify assets, broaden the channels for the disposal of non-performing loans, and increase the intensity of disposal.

Organization: TWS shipments reached 68 million in the first quarter, with Apple Inc ranking first with 32% market share.

According to a report released by market research firm Canalys, TWS shipments increased steadily to 68 million in the first quarter of 2022. Apple Inc took the crown with a 32 per cent market share, up 14 per cent from the first quarter of 2021. Although Samsung and XIAOMI declined, they still followed, staying in second and third place with 9 per cent and 7 per cent market share, respectively. As head audio manufacturers, Skullcandy and Edifier ranked fourth and fifth with 53% and 24% market share, respectively.

Institutional viewpoint

Fu Rui: it is not expected that the issuance of bonds by demonstration housing enterprises can be implemented on a large scale, and the sector will choose to embellish the land, China and overseas and Longhu.

Report refers to$Country Garden Holdings (02007.HK) $、$Longfor Group (00960.HK) $、$03990.HK (home ownership) $Selected by regulators as a model housing company, RMB bonds will be issued one after another this week. Fu Rui issued a report that if things are expected to be good for the company, and if onshore bonds can be issued at a more reasonable interest rate, more high-quality inner housing stocks are expected (such as$Xuhui Holdings Group (00884.HK) $、$New Town Development (01030.HK) $Will follow at a later time. However, the bank does not expect the measures to be extended to other private houses on a large scale, so it is difficult to improve the short-term liquidity of the beleaguered inner housing stocks significantly.

The bank maintains$China Resources Land (01109.HK) $、$China Overseas Land & Investment (00688.HK) $And Longhu is the first choice for the long-term inner housing plate; under the declining cash flow risk of Country Garden Holdings, it is considered that$Country Garden Services Holdings (06098.HK) $The attraction increases.

CICC: profit margins of mainland e-commerce platforms can be improved from this quarter.

CICC said in a report that the growth rate of e-commerce in the mainland is expected to bottom out in April this year, suggesting that we should pay close attention to the development of "618". The bank believes that the weak data for April is already expected in the market, and that overall e-commerce logistics performance is expected to gradually resume in May, and e-commerce platform revenue may bottom out after the growth rate of the second quarter of this year bottomed out, or hit bottom in the second half of the year due to a low base. The bank pointed out that the mainland e-commerce platform continues to pay attention to operational efficiency and is expected to improve its profit margin from the second quarter of this year. It is recommended to pay attention to those whose valuations have been overadjusted after market sentiment has stabilized.$Pinduoduo (PDD.US) $Opportunities, and$JD.com Group-SW (09618.HK) $After the previous larger stock price adjustment, based on the supply chain capacity and its bias towards the required consumer category, the fundamental performance of continuing to outperform the market growth rate is suggested, and it is suggested that attention should be paid to the short term.$BABA-SW (09988.HK) $A chance to fix the valuation.

Credit Suisse: downgrade$JD.com Group-SW (09618.HK) $The target price is HK $359, with a rating of "outperforming the market"

Credit Suisse reported that JD.com 's first-quarter income rose 18 per cent year-on-year, roughly in line with expectations, with an adjusted net profit of 4 billion yuan and an operating profit margin of 1.7 per cent, exceeding expectations of 1 per cent. The bank quoted JD.com management as expecting that the impact of the epidemic on the company in the second quarter would be more severe year by year, with the company optimizing costs, cutting back on low-return projects and stepping up cost cuts in March. Credit Suisse lowered its forecast for JD.com 's income for the second quarter and the whole year to 2.4% and 10% respectively, and adjusted operating profit margin by 7%, reflecting that the slowdown in growth was offset by cost control, and the target price was reduced from HK $398 to HK $359. Maintain the "outperform market" rating, still believe that the company's earnings growth will continue to be visible while returning to normalization.

CICC: health$Meituan-W (03690.HK) $Target price to HK $251, maintaining the "outperform industry" rating

CICC issued a report that lowered the target price of Meituan by 5 per cent to HK $251, maintaining its "outperform industry" rating. The bank pointed out that due to the uncertainty of the epidemic and macro consumption, Meituan's income forecast for this year and next year was cut by 5% and 4% to 221 billion yuan (the same below) and 297.9 billion yuan, and the adjusted net loss this year from 7.4 billion yuan to 8.8 billion yuan. Next year, it will be reduced to 8.5 billion yuan. The bank expects Meituan's income to grow by 23% to 45.5 billion yuan in the first quarter of this year, and the adjusted net loss to expand by 330 million yuan to 4.26 billion yuan on a quarterly basis, which is basically in line with market expectations.

Lyon: downgrade$XIAOMI Group-W (01810.HK) $Target price to HK $20, rating "buy"

Lyon Research reported that it lowered the target price of XIAOMI from HK $23.50 to HK $20, maintaining its "buy" rating. The bank said the company's first-quarter results were expected to be disappointing due to geopolitical risks and the epidemic. Total revenue is expected to fall 5 per cent to 72.7 billion yuan a year, mainly due to a decline in global smartphone shipments and overseas Internet of things sales due to weak consumer sentiment and supply and logistics challenges. The bank forecasts that adjusted net profit will fall 54 per cent year-on-year to 2.8 billion yuan due to XIAOMI's falling income and investment in electric cars, taking into account macro factors that may continue into the next quarter. The adjusted net profit forecast for 2022 and 2023 will be cut by 21 per cent and 13 per cent, respectively.

Credit Suisse: upward adjustment$Byd Company Limited (01211.HK) $The target price is HK $368, with a rating of "outperforming the market".

According to a report released by Credit Suisse, BYD launched its premium large-size multi-purpose vehicle (MPV) momentum D9 on Monday at competitive prices ranging from 335000 yuan to 460000 yuan. The bank said the Tencent D9 had received more than 3000 orders within 30 minutes of the price announcement, indicating that demand was very good. BYD plans to launch two other trendy brand products this year, including the medium-sized SUV in the third quarter and the large-sized seven-person SUV by the end of the year. Credit Suisse raised Byd Company Limited's target price from HK $350 to HK $368, maintained its rating of "outperforming the market" and raised the group's profit forecast for this year to 2024 by 6.6 per cent to 9.1 per cent, taking into account better-than-expected brand sales.